Cargo To Africa

Category: Heathrow Airport

  • Ethiopian Airlines: A Real Success Story Of A State Owned Enterprise

    South African Airways (SAA) are in a very terrible situation said an internal memorandum on the 6th of November 2015,

    It was made public last month that the SAA is technically insolvent and thus mortified of careless and irresponsible trading.  It is also legally obliged under the Companies Act to file for the liquidation of the company. But after the investigation of the SAA failure, it is confirmed that the quality of management was responsible, not the state ownership.

    Ethiopian Airlines, largest African airline

    Ethiopian Airline is the fastest growing and largest profitable airline in Africa. The airline has grown at an average rate of around 20 to 25 percent every year.The profits for the fiscal year 2014/15 were amounted to $175 million, which was more than the profits of entire African airlines combined.

    Ethiopian Airlines network

    Ethiopian airlines is the most networked African airline because both in terms of schedule routes within the Africa as well as the international destinations. It serves almost 91 destinations internationally, where, 52 destinations in Africa, 15 destinations in Europe and America, however 24 destinations are in Asian countries from Gulf to Tokyo.

    It has a youngest and the largest cargo fleet in Africa. It has 68 passenger planes and makes more than 230 departures daily, it is an average of the previous five years.

    Cargo and freight within Africa

    The airline has around 1.2 million tonne annual capacity of cargo and freight and it has its major cargo terminal in Addis Ababa, airline hub. This hub is a massive setup and slightly smaller than London Heathrow Airport, which is the 4th largest in Europe.

    Ethiopian airline currently covers 48 cargo destinations where the largest  portion comes from Europe and Asia. The major part of cargo to Africa handled by the airline ad it has eight dedicated cargo carriers, however, by 2025, airline has a target to increase the fleet to 18 cargo carriers.

    The success factor

    The major success factor of the airline is strategically capturing of entire African market and the establishment of a multi hub system on the continent. The strategy and alliance president of the airline commented that Africa is a massive continent and it was not sufficient to control the continent with one hub.

    Thus, the airline bought the failing ASKy airline and Air Malawi and used them as a part of the multi system hub.

  • Lufthansa raging on Gulf carriers

    The “Big Three” Gulf carriers take another swipe at the German flag carrier

    The Arabian airlines are posing great threats to Europe’s civil aviation infrastructure, says Lufthansa, the German flag carrier. Being a persistent critic of Emirates Airlines, Etihad Airways and Qatar Airways, Lufthansa strongly believes that its business has been damaged by the Gulf carriers who are delivering air cargo to Africa and rest of the world at a price the other carriers can’t afford.

    According to German carrier, these “Big Three” are heavily subsidised by their governments to carry out their operations and ultimately enabling them to offer door-to-door cargo, parcel delivery and other freight related services at fairly cheaper prices. All three companies are denying these charges

    To make its point, Lufthansa has presented a briefing document in which it has set ou

    t the importance of air services, both passenger and cargo to the German economy. It further added that in Germany, airlines employ nearly 325,000 people who pay social insurance benefits and taxes of €23 billion annually.

    It also noted that other airlines in the Lufthansa Group – Austrian Airlines, Brussels Airlines, and Swiss International Air Lines, are all playing vital role in their respective economies. Although the air cargo, by volume is responsible for 2% of exports but by value it constitutes 30% of exports.

    Airlines like Lufthansa Cargo – with their experience, their network, and commitment to location – are decisive partners for Germany’s globally active industrial enterprises. It is becoming ever more apparent that these structures are being massively undermined Europe-wide by the mega hubs along the Persian Gulf,” added the air freighter.

    The more alarming thing is that all these three Gulf carriers are deploying their fast-increasing fleets overseas and expanding their business at a rapid pace. Lufthansa also said that they believe in a fair competition, more than it has up to now and for that it is absolutely necessary to pursue an aviation policy.

    It further added that the European politicians can be of great help against non-European competitors if they don’t saddle them with regulations and additional levies.

  • Heathrow Impresses With Increasing Export

    Heathrow exports are on the rise

     

    Heathrow has listed salmon as one of the main exports in their cargo services indicating that flying fish are definitely a popularity that will remain. Salmon fish was one of the list alongside gold, jet engines and surprisingly raincoats. They all topped the cargo export but salmon was by far the largest with about 50 000 tonnes shipped through Heathrow.

    Research also showed that the London airport exports was a whopping 345,575 tonnes of British goods and in price value more than 48 billion pounds worth.

    When it comes to trading partners china is of great value. The export to china increases often and up till July 7.6 billion pounds of export goods were to china which is an increase of over a hundred per cent from the year before.

    While it is currently behind America in export goods, America being at 14 billion pounds, it is highly expected that within a couple of years it will overtake and become the largest leading export base. That is of course, if current trends continue.

    Based on export value four out five countries that hold the highest export trade are from Asia. This shows how important this region is to the export market.

    Aside from the large amount of tones exported there were precious and valuable goods that contributed to the high price value of Heathrow export. The metals were worth 26 billion pounds and other jewelry around 3 billion and then diamonds at 800 million. All this annually is impressive for Heathrow.

    Engines also played a huge part mostly due to Rolls Royce with many aircraft engines and components passing through Heathrow giving Britain a stable and firm position in the global aerospace industry. Britain’s industry worth in this part is 29 billion pounds a year and this places it second in the list. The previous year saw 3.5bn exports of aircraft engines, 1.9bn in aircraft engine parts and a 1.6bn value of other related components.

    Other increasing exports include medical related items such as vaccines and this is mostly due to crises such as Ebola. This crisis saw an increase in human vaccine exports by almost 100 per cent.

    Salmon in weight totaled to an export of 46,343 tonnes, a large amount equal to a significant amount of jumbo jets.

    Fashion is not excluded from the British export market with 3,640 tonnes of clothes currently being exported and steadily increasing. The biggest increase is with raincoats and overcoats.

     

  • UK Shippers Welcome Heathrow Upgradation Plan!

    UK government is looking to increase Cargo volume at Heathrow Airport

     

    The Freight Transport Association (FTA) has said the warm welcome to Heathrow up gradation plans. It is important to highlight that FTA had requested to double cargo investment at London Heathrow previously as well. The authorities never took it seriously earlier, but it’s never too late to step towards the right direction.

    The plan to double cargo investment at Heathrow will have long lasting impacts on the growth of the UK economy as a whole. The freight industry will flourish and strengthen the foundation for growth and prosperity.

    Export Target 2020

    Heathrow Chief Executive John Holland Kaye explained, Cargo is the back bone of the UK economy and Heathrow is a central “freight connector” for the world. He said, about 26% of total goods are being shipped by London Heathrow.

    The new cargo investment plan will improve support facilities that will help to enhance cargo services. He said, we at London Heathrow are committed towards achieving export target. The UK government has set £1trn export target to be met by 2020.

    Air freight is crucial

    The FTA has highlighted the importance of air freight and defined it as one of the most effective and efficient cargo channels. Its importance increases many folds in regards with pharma goods such as the high-value lifesaving drugs that require the fastest delivery channel.

    No doubt air cargo is the fastest available medium of transporting such goods outside the country. The cargo investment will result in huge profits and portray strong image for London Heathrow.

    Fool Proof Cargo Arrangements 

    According to the details of the plan, the new pharmaceutical facility will be built at Heathrow along with arrangements to take care of temperature sensitive items and goods.

    The expansion and improvements of cargo facilities will reduce the delays and congestion and will enable smooth processes for international cargo. The plan will help to make “London Heathrow” an international cargo hub with state of the art support facilities.